Morgan Stanley Cuts Bank of America Price Target

Analysts cite macroeconomic headwinds in downgrading stock to $61 from $67

Apr. 1, 2026 at 3:10pm

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Morgan Stanley has lowered its price target for Bank of America (NYSE: BAC) from $67 to $61, while maintaining an 'overweight' rating on the stock. The investment bank cited broader macroeconomic challenges as the reason for the target reduction, though it still sees upside potential for the financial services giant's shares.

Why it matters

Bank of America is one of the largest and most closely watched banks in the United States. Analyst price target changes can significantly impact investor sentiment and trading activity around the stock, making this a notable development for the company and the broader financial sector.

The details

In a research report issued on Tuesday, Morgan Stanley analysts reduced their price target on Bank of America from $67 to $61, while maintaining an 'overweight' rating. The new $61 target suggests potential upside of 23.64% from the stock's previous closing price. The analysts cited macroeconomic headwinds as the primary driver behind the target reduction, though they continue to have a positive long-term view on the bank's prospects.

  • Morgan Stanley published the updated price target and rating on April 1, 2026.

The players

Morgan Stanley

A global financial services firm and one of the largest investment banks in the world.

Bank of America

One of the largest commercial banks in the United States, offering a wide range of banking, investing, asset management, and other financial and risk management products and services.

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What’s next

Investors will be closely watching Bank of America's stock performance in the coming weeks and months to see if the reduced price target from Morgan Stanley has a meaningful impact on the share price. Additionally, any further commentary or analysis from other major Wall Street firms on the bank's outlook could sway investor sentiment.

The takeaway

This price target reduction from a prominent investment bank highlights the ongoing macroeconomic challenges facing the financial sector, even for a large, diversified institution like Bank of America. While Morgan Stanley remains bullish on the stock's long-term potential, the near-term headwinds cited in the report could create some near-term volatility and uncertainty around the bank's shares.